Stellantis, the world's fourth-largest automaker, faces a challenging period as CEO Carlos Tavares unexpectedly resigns amid disappointing third-quarter results. The company's stock plummeted 8% in pre-market trading, marking a 43% decline this year. Despite the sudden announcement, Stellantis had already been seeking Tavares' successor since September, aiming to appoint a new CEO by mid-2025.
Tavares, who joined in 2014, was instrumental in rescuing Peugeot-Citroën and later forming Stellantis through a merger with Fiat-Chrysler in 2021. However, recent tensions with the board and stakeholders, exacerbated by a 27% drop in net revenue and a 20% reduction in shipments, led to his departure. The company plans to address its North American inventory issues and improve its market share by year-end.
Stellantis confirmed its 2024 financial guidance, targeting an adjusted operating profit margin of 5.5% to 7%.
